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The dictionary defines “advertise” as “to make (something for sale) known to the public”. Advertising can therefore be considered a form of communication the ultimate aim of which is to recommend consumers to choose a specific product or service.
Every company tries to differentiate its products from those of the competition, and a key element here is the strategy of branding.
A brand can be defined as “the name attached to a product or service, how that name is visually expressed through a logo and how that name and logo are developed through a company's communications”. Brand also represents some intangible aspects of a product since it is how the product or often even the whole company is perceived by its customers.
A successful brand will make customers think of your company first when they think of the particular product category to which the brand is attached.
Marketing techniques:
1. undercover marketing
2. e-marketing
3. direct marketing
4. product placement
5. viral marketing
6. advertising
a) using electronic media like email or SMS to promote products
b) promoting products to target customers, for example, through addressed mail
c) persuading people to buy a product or service by announcing it on TV, radio, or in other media
d) marketing that spreads from consumer to consumer, often online
e) marketing in which customers do not realize they are being marketed to
f) putting products or references to products in media like films or video games
sales promotion techniques:
1 BOGOF: buy one get one free
2 loss leaders: products sold at a low price to encourage sales of another product
3 tying: making sales of one product depend on the customer buying another
4 cashback: money returned after the customer has paid for something
5 bundling: selling several products together as one combined product
9. Cultural problems in international marketing (Wal–Mart example)
When the company goes international it can meet some cultural problems. There is a bright example of how Wal-Mart failed on the German market. The most glaring mistake was to disregard the structure of distribution in German Food retail. Drawing on US model, Wal-Mart decided it wanted to control distribution to stores rather than leave it to suppliers. The result was chaos because suppliers could not adapt to Wal-Mart’s centralized demands. The next mistake was, filling top positions with US expatriates. The ensuing exodus of German managers deprived the group of local expertise. Struggling to navigate German’s Byzantine planning and social regulations, the group has only refurbished a quarter of its 95 stores and many sites remain unattractive, too small and poorly located.
10. Key indicators of the country’s economic and how they effect decisions on outsourcing.
GDP: Gross Domestic Product. The sum of all output produced by economic activity within a country.
Human Development index: An indicator of the quality of life. Combines income levels with life expectancy and literacy / years of schooling. A score of 80 and over = high human development; 50-79 = medium; those scoring under 50 have a low level of human development.
Economic Freedom index: Ranks countries according to how much the government intervenes in the economy and thus restricts economic freedom. 1 = the most free; 5 = the least free.
Inflation: measured as a percentage increase in the price of consumer goods between two dates.
Cost of living: Looks at conditions for expatriates rather than citizens of the country. The index is based on typical urban prices an international executive and family will face abroad. The prices are for products of international comparable quality found in a supermarket or department store. New York city prices are used as the base, so United States=l00.
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